Business Breakdowns

 This is Matt Reustle. Today we are breaking down EQT, the Swedish global investment organization. Right off the top, I need to mention our guest today, Sean Barrett, who couldn't have been more perfect for this breakdown. Sean has been investing in the Alts since Blackstone christened this asset class just over a decade ago. Sean is the founder of Counter Global, and alt investing is ingrained in its DNA. We cover the massive, yet lesser-known EQT, the Wallenberg family ties, and how this business has continued to generate returns at scale. Beyond the EQT conversation, you are going to get a masterclass on Alts investing. Please enjoy this Breakdown of EQT. ⁠⁠⁠Subscribe⁠⁠⁠ to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page⁠⁠ ⁠here⁠⁠⁠. —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit⁠⁠⁠ joincolossus.com/episodes⁠⁠⁠. Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠⁠https://thepodcastconsultant.com⁠⁠⁠). Show Notes (00:00:00) Welcome to Business Breakdowns (00:01:38) Complexities of Alternative Asset Management (00:04:27) Understanding EQT: A Thematic Private Markets Investment Manager (00:06:36) The Wallenberg Legacy and EQT's Origins (00:11:54) EQT's Differentiation and Investment Strategy (00:20:36) Leadership and Succession Planning at EQT (00:25:15) Regulatory Environment and Strategic Focus (00:31:15) EQT's Private Equity and Asia Strategies (00:37:39) EQT's Strategic Use of M&A (00:39:49) EQT's Infrastructure Business (00:42:01) EQT's Real Estate Business (00:45:28) Innovative Exit Strategies (00:49:08) Fundraising Success and Future Prospects (00:59:31) Financial Model and Valuation (01:06:46) Key Risks and Opportunities (01:16:15) Lessons from EQT

This is Zack Fuss. Today, we're tackling a giant in a controversial and incredibly complex industry, UnitedHealth Group. At its recent apex, UNH was a half-trillion-dollar market cap business, the 15th largest listed business in the United States. Today, that market cap sits at just $275 billion. The company generates an excess of $400 billion in sales annually and produces $40 billion in EBITDA as it touches every facet of the American healthcare system. To break down UnitedHealthcare, I'm joined by Stephanie Niven, a co-PM of the Global Sustainable Equity Strategy within the Sustainable Equity Team at Ninety One. Stephanie has been following the company since 2012 and she helps us to unravel this intricate business. We explore how UnitedHealthcare operates as a fully integrated healthcare system from its insurance arm to its high-margin health services business. We also dive into the concept of value-based care, the recent headwinds from Medicare Advantage scrutiny, and whether the market is mispricing this complex giant amidst regulatory noise and leadership changes. Please enjoy this breakdown of UnitedHealth Group. ⁠⁠Subscribe⁠⁠ to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page⁠ ⁠here⁠⁠. —- This episode is brought to you by Octus, formerly Reorg, is the essential credit intelligence and data provider for nearly 40,000 professionals across the world's leading buy side firms, investment banks, law firms and advisory firms. By surrounding unparalleled human expertise with embedded AI technology, data and workflow tools, Octus unlocks powerful truths that fuel decisive action in financial markets. Visit⁠⁠ octus.com⁠⁠ to learn how rigorously verified intelligence is delivered at speed to create a complete picture across the entire credit lifecycle. —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit⁠⁠ joincolossus.com/episodes⁠⁠. Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠https://thepodcastconsultant.com⁠⁠). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:51) Understanding the US Healthcare System (00:10:24) UnitedHealth Group's Origins and Evolution (00:13:41) UnitedHealth Group's Business Model (00:22:36) Optum: The Overlooked Powerhouse (00:29:24) Value-Based Care: A New Approach (00:34:51) Current State of US Healthcare System (00:36:49) Regulatory Scrutiny and Media Attention (00:37:27) Investor Concerns and Company Response (00:42:49) Structural vs. Cyclical Issues (00:48:42) UnitedHealth's Technological Edge (00:52:07) Political Risks and Regulatory Environment (00:57:16) Medicare Advantage: A Closer Look (01:02:02) Lessons from UnitedHealth's Strategy

Today we are breaking down Moncler, the high-end outerwear brand. Known for their down jackets and  stylized M logo, it's a mix of style and substance that blends into the brand history and evolution of Moncler.  I am joined by Chris Davies, investment manager at Baillie Gifford to cover Moncler's story, particularly in the hands of Remo Ruffini. We get into its push to define luxury outerwear and extend outward into other product categories while keeing that core DNA of fashion and function. This is a particularly interesting episode for anybody interested in the luxury market generally, and Moncler's push to carve out its own niche. Please enjoy this Breakdown on Moncler.  ⁠Subscribe⁠ to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page ⁠here⁠. —- This episode is brought to you by Octus, formerly Reorg, is the essential credit intelligence and data provider for nearly 40,000 professionals across the world's leading buy side firms, investment banks, law firms and advisory firms. By surrounding unparalleled human expertise with embedded AI technology, data and workflow tools, Octus unlocks powerful truths that fuel decisive action in financial markets. Visit⁠ octus.com⁠ to learn how rigorously verified intelligence is delivered at speed to create a complete picture across the entire credit lifecycle. —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit⁠ joincolossus.com/episodes⁠. Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:31) Moncler's Iconic Products (00:06:47) Historical Evolution of Moncler (00:11:48) Moncler's Three Pillars (00:24:58) The Stone Island Acquisition (00:32:39) Estimating the Luxury Outerwear Market (00:33:58) Moncler's Market Influence and Growth (00:35:48) Defining Quality in Luxury Brands (00:36:47) Moncler's Down Integrity and Customer Experience (00:41:46) Managing Supply and Demand in Luxury (00:47:18) Capital Allocation and Growth Opportunities (00:55:03) Risks and Challenges in the Luxury Market (00:58:46) Key Lessons from Moncler

Today, we are replaying our Breakdown on Vulcan Materials. Vulcan is America's largest producer of construction aggregates. This includes all of the crushed rock, sand, and gravel, which gets used for the foundation of nearly everything around us. Think of all of the buildings, the roads, and the infrastructure that define the physical footprint of America. To break down Vulcan, I am joined by Rob Hansen, Senior Analyst at Vontobel Asset Management. Rob shares what makes this relatively simple business so successful. We get into the dynamics of operating quarries, the logistics of moving rocks, and what is cyclical versus what is not. Please enjoy this breakdown of Vulcan Materials. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Octus, formerly Reorg, is the essential credit intelligence and data provider for nearly 40,000 professionals across the world's leading buy side firms, investment banks, law firms and advisory firms. By surrounding unparalleled human expertise with embedded AI technology, data and workflow tools, Octus unlocks powerful truths that fuel decisive action in financial markets. Visit⁠ octus.com⁠ to learn how rigorously verified intelligence is delivered at speed to create a complete picture across the entire credit lifecycle. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Follow us on Twitter: @JoinColossus | @zbfuss | @ReustleMatt Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:03:15) First Question - Introduction to Vulcan Materials and the Construction Aggregates Market (00:07:35) Exploring the History & Evolution of Vulcan Materials (00:09:10) Geographical Distribution and Impact on the Quarry Market (00:12:31) The Role of Logistics and Transportation in the Aggregates Industry (00:17:42) The Impact of Vertical Integration and Technology on Vulcan's Operations (00:19:26) Analyzing the Volume and Pricing Trends in the Aggregates Industry (00:23:49) The Role of Technology in Enhancing Customer Experience and Operational Efficiency (00:29:31) Vulcan's Pricing Strategy (00:32:31) The Capital Intensive Nature of The Business (00:36:21) Optimizing Logistics Through M&A (00:43:09) Trends in Earnings Growth and Future Expectations Among Commercial Construction  (00:47:51) Understanding the Risks and Challenges In This Industry  (00:50:17) Key Lessons from Vulcan's Business Model Important Information: Information provided represents the views of a company of the Vontobel Group (“Vontobel”) and should not be considered investment advice and/or legal, tax, financial or other advice. Further, not a recommendation to purchase, hold or sell any investment and no representation is given that the securities discussed are suitable for any particular investor. Although Vontobel believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this document.  

Today we are breaking down the work management software platform monday.com. Founded in February 2012, today monday.com has a market cap of over $14 billion. The platform has transformed a simple task management tool to a versatile platform serving numerous industries and use cases.  I am joined by Ben Hensman, Portfolio Manager of the Global Tech Fund at Square Peg. He takes us through the story of monday.com and how they emerged as a winner amidst plenty of competition. There are critical lessons to be learned from its successful expansion into larger enterprise markets. We cover its impressive financial growth, innovative architectural design, and a move into AI. Please enjoy this breakdown of monday.com. ⁠Subscribe⁠ to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page ⁠here⁠. —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit⁠ joincolossus.com/episodes⁠. Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠). Show Notes (00:00:00) Introduction to monday.com (00:01:35) The Origin Story of monday.com (00:02:30) Early Growth and Success (00:02:57) Product Flexibility and Customer Use Cases (00:05:14) Transparency, Trust, and Efficiency (00:12:19) Customer Success Stories (00:16:00) Expanding into Larger Enterprises (00:19:12) Innovative Database Architecture (00:24:11) Sales and Go-to-Market Strategies (00:36:14) Partner Program and Sales Models (00:38:46) Net Dollar Retention Trends (00:44:54) AI's Impact on monday.com (00:54:40) Financial Performance and Margins (01:03:22) Market Opportunity and Competitive Landscape (01:07:30) Valuation and Future Prospects (01:12:37) Lessons from monday.com

This is Zack Fuss. Today, we are breaking down Interactive Brokers, widely recognized as IBKR. Founded in 1978, Interactive Brokers evolved from a market maker on the American Stock Exchange to a global, cutting-edge electronic brokerage firm. Its founder, Thomas Peterffy, remains far and away its largest shareholder and has earned his place as one of the wealthiest people in the world. To break down IBKR, I'm joined by Freddie Lait and Jacopo Di Nardo of Latitude Investment Management. We explore the journey of IBKR from its early days as Timber Hill to its current status as a publicly traded company with a market cap of nearly $80 billion. We also discuss their differentiated tech stack, their global reach, and their famously low fees. Please enjoy this breakdown of Interactive Brokers. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. —- This episode is brought to you by Octus, formerly Reorg, is the essential credit intelligence and data provider for nearly 40,000 professionals across the world's leading buy side firms, investment banks, law firms and advisory firms. By surrounding unparalleled human expertise with embedded AI technology, data and workflow tools, Octus unlocks powerful truths that fuel decisive action in financial markets. Visit octus.com to learn how rigorously verified intelligence is delivered at speed to create a complete picture across the entire credit lifecycle.  —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:03:41) Overview of Interactive Brokers (00:04:53) Revenue Streams and Business Model (00:06:15) Competitive Landscape and Differentiation (00:08:38) Founder Thomas Peterffy's Story (00:11:31) Payment for Order Flow and Market Access (00:13:41) Automation and Risk Management (00:16:50) Customer Experience and Balance Sheet Strategy (00:26:33) Growth Opportunities and International Expansion (00:34:34) Valuation and Financial Metrics (00:37:28) Risks and Stress Tests (00:42:13) Lessons From IBKR

This is Zack Fuss. Today we are breaking down Chemed. Chemed represents the union of two seemingly distinct businesses: end-of-life healthcare and plumbing services. As our guest aptly puts it, old houses and old people. The two underlying businesses, VITAS and the widely recognized Roto-Rooter, both offer interesting stories in their own right. The strength of this business has been its intentional and well-executed capital allocation strategy, which has resulted in a 21% EPS CAGR since 2003, a market cap of $8.5 billion, and a net cash balance sheet.  On the one hand, you have Vitas Healthcare, a leading provider of end-of-life hospice care in the US founded in 1978. And on the other hand, there's Rotor-Rooter, the iconic plumbing drain cleaning and water cleanup service provider whose roots go all the way back to 1935. So, how did an end-of-life healthcare company and an emergency plumbing business end up under the same corporate umbrella? I'm joined today by Chadd Garcia, a portfolio manager at the Ave Maria Focused Fund. We'll discuss their unique business models, the growth drivers of the businesses, and why Chemed and its management team believe that this unique combination ultimately works for maximizing shareholder value.  Please enjoy this Breakdown on Chemed Corporation. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:00:12) ChemED's Business Philosophy (00:01:45) History and Evolution of ChemED (00:05:13) Roto-Rooter: Business Breakdown (00:08:19) Vitas: Business Breakdown (00:09:15) Vitas: Business Breakdown (00:13:27) Roto-Rooter: Competitive Landscape (00:20:17) Comparing Roto-Rooter and Vitas (00:21:20) Vitas: Market Dynamics and Growth (00:34:41) Capital Allocation and Future Prospects (00:36:48) Lessons From Creaking Down Chemed

Today we are breaking down Ecolab, a global sustainability leader offering water, hygiene, and infection prevention solutions that protect people & the resources vital to life. As of this recording, Ecolab has a $66 billion market cap and protects over 36% of the world's packaged food supply and over 44% of the global milk supply. My guest is Todd Wenning, founder of KNA Capital Management, who has a knack for finding interesting businesses. We get into Ecolab's very on-brand origin story, how the business kept that core focus throughout its history, and how it became one of two vendors that any US McDonald's must work with. Please enjoy this Breakdown on Ecolab. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. —- This episode is brought to you by Octus, formerly Reorg, is the essential credit intelligence and data provider for nearly 40,000 professionals across the world's leading buy side firms, investment banks, law firms and advisory firms. By surrounding unparalleled human expertise with embedded AI technology, data and workflow tools, Octus unlocks powerful truths that fuel decisive action in financial markets. Visit octus.com to learn how rigorously verified intelligence is delivered at speed to create a complete picture across the entire credit lifecycle.  —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:03:24) Founding Story and Early Innovations (00:04:52) Ecolab's Modern Business Segments (00:06:10) Chemical Foundations and Major Acquisitions (00:07:05) Sustainability and Solid Chemical Solutions (00:08:36) Market Opportunities and Challenges (00:10:09) The Nalco Acquisition and Water Solutions (00:15:40) Customer Relationships and Sales Strategy (00:20:29) Economic Sensitivity and Resilience (00:22:34) Financial Performance and Growth Projections (00:24:34) Capital Allocation and M&A Strategy (00:25:58) Competitive Landscape and Market Position (00:28:20) Future Growth Drivers and Water Focus (00:37:18) Valuation and Investor Considerations (00:40:18) Lessons from Breaking Down Ecolab

Today, we explore the world of tools to break down Snap-on. Snap-on has been around for over 100 years and operates with over a $17 billion market cap. It has continuously evolved the straightforward model of selling tools to specialists, like mechanics, into a durable business model while carving out a leadership position in the professional tools market. My guest is Matt Fleming, portfolio manager at William Blair. Matt gets into what makes Snap-on stand out, the early days of tool innovation, the relationship-focused sales team built around a franchise model, and a financing program that dates back to the very early days. If you've only lived in the world of DeWalt tools, you'll have some fun learning about the professional world through Snap-On. Please enjoy this breakdown of Snap-on.  Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:02:22) Understanding Snap-on's Market and Customers (00:06:19) Snap-on's Rich History and Evolution (00:15:03) The Financial Dynamics of Snap-On's Franchise Model (00:19:42) Snap-on's Competitive Edge and Innovation (00:22:32) Snap-on's Financial Model and Growth Drivers (00:24:28) Breakdown of Tool Industry Segments (00:25:39) Challenges in the Evolving Auto Repair Market (00:28:38) Historical Performance During Economic Downturns (00:30:25) Margin and Cash Flow Analysis (00:34:16) Capital Allocation and Risk Management (00:41:41) Valuation and Market Comparisons (00:44:58) Key Lessons from Snap-on

Today we are breaking down Goosehead Insurance. I always enjoy hearing about how a new entrant has effectively carved out a niche in a world of incumbents and Goosehead fits that billing perfectly.  I'm joined by Geoff Collette, founder and PM of Aeon Capital Partners, and he walks us through the story of Goosehead identifying a bottleneck in the home-buying process.  We also cover the evolving market, where captives like State Farm and Allstate are leaving opportunities for independent players like Goosehead to provide value.  There's a lot to learn from Goosehead and its evolution, with notable themes like technology, the franchising model, and an emphasis on speed. Please enjoy this breakdown on Goosehead Insurance. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Octus, formerly Reorg, is the essential credit intelligence and data provider for nearly 40,000 professionals across the world's leading buy side firms, investment banks, law firms and advisory firms. By surrounding unparalleled human expertise with embedded AI technology, data and workflow tools, Octus unlocks powerful truths that fuel decisive action in financial markets. Visit octus.com to learn how rigorously verified intelligence is delivered at speed to create a complete picture across the entire credit lifecycle.  —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:26) How Goosehead Attracts Customers (00:05:15) Market Focus and Business Scale (00:06:07) Goosehead's Growth and Key Players (00:08:51) The Founding Story of Goosehead (00:12:28) The Shift from Captive to Independent Agents (00:15:29) Challenges in the Insurance Market (00:19:37) Goosehead's Unique Business Model (00:36:42) Franchising and Corporate Strategy (00:41:00) Operational Challenges and Strategic Adjustments (00:46:28) Financial Performance and Future Prospects (01:00:29) Competitive Landscape and Risks (01:07:40) Valuation and Lessons From Goosehead

Today, we are breaking down the food catering giant Compass Group. Whether it's your corporate cafeteria, the food stands at a sporting event, or the old hospital food tray, the food services industry is all around you. Compass is the giant in this space, with a history that dates back to the emergence of this outsourced trend. My guest is Asif Jeevanjee, Chief Executive of Oakmont Capital. Asif talks through both the business and the sector. How does the ecosystem work? What do contracts typically look like? And why had I heard of Aramark but not Compass, when Compass is nearly double the size? Here is another example of carving out an effective business model around an essential need product. Please enjoy this breakdown of Compass Group. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:01:22) Understanding the Food Service Market (00:05:03) Contract Structures and Retention (00:11:47) The Origin Story of Compass Group (00:17:33) Expansion into the US Market (00:21:34) Sectorization and Market Penetration (00:27:45) Growth Strategies and Pricing (00:29:07) Financial Dynamics and Margins (00:30:41) Procurement and Food Buy (00:35:24) Labor Management and Technology (00:37:55) Impact of Economic Cycles and Covid (00:43:27) Capital Allocation and Valuation (00:51:44) Lessons From Breaking Down Compass (00:54:02) Key Lessons from Compass

Today we are breaking down EssilorLuxottica, a global leader in the eyewear industry, formed by the merger of Essilor and Luxottica in 2018. Today the business sports a nearly $130 billion market cap. EssilorLuxottica represents a vertically integrated business, encompassing design, manufacturing, distribution, and retail operations across both vision care and eyewear fashion segments. To break down EssilorLuxottica, I am joined by Swetha Ramachandran who manages the Artemis ‘leading consumer brand' strategy and is co-manager of the ‘global select' and ‘global focus' strategies.  Swetha analyzes the strategic rationale behind the merger, assessing how it shaped the company's competitive advantages.  We discuss the economics of prescription lenses, high-fashion sunglasses, and iconic brands like Ray-Ban and Oakley. We also explore the impact of emerging technologies like Smart Glasses, the Ray-Ban Meta glasses, and evolving consumer preferences on the eyewear market, as well as the competitive impact of upstarts like Warby Parker. Please enjoy this breakdown of EssilorLuxottica. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Octus, formerly Reorg, is the essential credit intelligence and data provider for nearly 40,000 professionals across the world's leading buy side firms, investment banks, law firms and advisory firms. By surrounding unparalleled human expertise with embedded AI technology, data and workflow tools, Octus unlocks powerful truths that fuel decisive action in financial markets. Visit octus.com to learn how rigorously verified intelligence is delivered at speed to create a complete picture across the entire credit lifecycle.  —- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:24) Essilor Luxottica: A Unique Business Model (00:05:08) Market Leadership and Revenue Breakdown (00:08:13) The Merger: Essilor and Luxottica (00:10:18) Financial Performance and Strategic Investments (00:12:22) Challenges and Competitive Landscape (00:18:37) Global Operations and Market Strategy (00:21:04) Innovations and Future Prospects (00:22:36) Financial Analysis and Capital Allocation (00:26:11) Competitive Pressures and Market Position (00:28:47) Geographic Footprint and Strategic Growth (00:30:44) Acquisitions and Strategic Endeavors (00:32:38) Partnerships and Technological Integration (00:35:13) Summary and Key Takeaways (00:41:36) Lessons from EssilorLuxottica

Today we are breaking down Watsco, the market leader in HVAC distribution with a unique value proposition. If you've ever had an air conditioning issue, there's a decent chance it was a Watsco distributor on the other side of that phone call.    My guests today are Lucy Adams, Investment Director at Caledonia Investments, and Alan Murran, Co-Head of Public Companies at Caledonia Investments. Lucy and Alan help track the history of Watsco like the initial pivot from manufacturer to distributor and how Watsco formed relationships with the major OEMs like Carrier. We also dissect their reputation for a strong culture, with what has to be one of the most unique employee compensation plans in effect. Please enjoy this breakdown of Watsco. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:03:34) Watsco's Role in HVAC Distribution (00:04:40) Watsco's Business Model and Services (00:06:42) Real-World Example of Watsco's Impact (00:09:28) Market Position and Competition (00:12:55) Historical Evolution of Watsco (00:15:52) Exclusivity Agreements in HVAC Industry (00:18:05) Residential vs. Commercial Operations (00:21:04) Growth Strategies and M&A Philosophy (00:26:45) Carrier Joint Venture and Future Opportunities (00:29:40) Watsco's Multi-Brand Acquisition Strategy (00:31:34) Gross and Operating Margin Expansion (00:33:24) Pricing Strategies and Market Dynamics (00:35:16) Recurring Revenue and Business Model (00:37:36) Cash Flow Management and Capital Allocation (00:40:52) Technology Adoption and Digital Transformation (00:45:50) Incentive Programs and Ownership Culture (00:50:45) Risks and Competitive Landscape (00:55:02) Lessons from Watsco

 ​Today, we are breaking down the  global alternative asset manager, Apollo. I reflected on my personal experiences with Apollo for this episode, and there's a saying that hard work can beat talent when talent doesn't work hard. Well, Apollo has talent, and Apollo works really damn hard. They will do everything they can to protect their capital, so if you're on the other side of the table from them, you never feel fully comfortable. I am joined by Hunter Hopcroft, a financial analyst and writer based in New York. We get into what makes Apollo, Apollo, and Hunter share the backstory of how it was born out of Drexel Burnham and Michael Milkin's DNA. We get into some of the early deals, the theme of craving complexity, how they differ from the KKRs or Blackstones, and the future of the industry. Please enjoy this Breakdown of Apollo. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. —-- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:02:49) Apollo's Current Landscape (00:07:45) Apollo's Founding and Early Days (00:10:39) Key Deals and Strategies (00:17:09) The 2000s and Financial Crisis (00:22:10) IPO and Public Transition (00:25:47) Leadership Transition to Mark Rowan (00:31:20) Rowan's Vision and Athene Merger (00:35:12) Investment Strategies of Alt Managers (00:36:28) The Athene Merger and Its Implications (00:38:30) Rowan's Breakthrough in Spread Generation (00:39:49) Innovative Asset Origination Platforms (00:44:42) Private Credit and Market Dynamics (00:46:49) The Future of Apollo and Private Credit (00:52:09) Evaluating Apollo's Business Model (01:05:33) Reputation and Evolution of Apollo (01:08:50) Lessons from Apollo

Today we are breaking down machine vision leader, Cognex. Cognex Corporation is an American manufacturer of machine vision systems, software and sensors used in automated manufacturing to inspect and identify parts, detect defects, verify product assembly, and guide assembly robots. It is not your typical reoccurring revenue story. They are a self proclaimed cyclical that has tended to focus on a specific customer segment over time, looking for S curves that might trigger their next growth era.   Our guest today is Brett Larson from NZS Capital. Brett and I covered Trane Technologies last year, and today he gives us a different angle on the industrial economy with Cognex. We get into the history of machine vision and how Cognex is a factory player. Please enjoy this business breakdown on Cognex. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.  —-- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Learn About Finley (00:04:28) Overview of Cognex and Its Products (00:07:29) Market Size and Growth (00:08:23) Competitors and Market Position (00:12:35) Sales and Customer Base (00:13:48) History and Evolution of Cognex (00:17:36) Deep Learning and Edge Learning (00:22:42) End Markets and Applications (00:26:32) Financials and Market Cycles (00:28:54) Culture and Leadership (00:39:13) Valuation and Risks (00:43:54) Key Lessons From Cognex

Today, we are breaking down Rolls-Royce. A fair warning to those expecting to hear about luxury automobiles, that division was split from this business in the 1970s. But as we discuss the history of Rolls-Royce on this episode, you will hear how the DNA of this company still ties together from its early 1900s origins. Our guest is Graeme Forster from Orbis Investments. Graeme walks us through the core business of Rolls-Royce in the aerospace market, the evolving duopoly of the wide-body aircraft engine manufacturers, and the ups and downs of properly capturing the economic opportunity. I really appreciated Graeme's intellectual honesty in discussing Rolls, and I expect you will, too. Please enjoy this Breakdown on Rolls-Royce For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Follow us on Twitter: @JoinColossus | @ReustleMatt | @domcooke | @zbfuss  Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Learn About Finley (00:04:54) Overview of Rolls-Royce (00:08:35) History and Evolution of Rolls-Royce (00:10:44) Rolls Royce's Aerospace and Defense Ventures (00:11:57) Challenges and Nationalization (00:14:43) Current Business Segments and Market Position (00:20:57) Service Agreements and Profitability (00:27:41) Engineering Excellence vs. Commercial Strategy (00:31:26) The Aerospace Business Ecosystem (00:33:11) Rolls-Royce's Margin Profile (00:35:13) Challenges and Changes in Management (00:37:28) Cost Structure and Revenue Optimization (00:38:32) Engine Performance and Development (00:40:04) Market Dynamics and Competition (00:49:13) Future of Nuclear Reactors (00:52:46) Capital Allocation and Management (00:56:08) Lessons from breaking down Rolls-Royce

Today, we are replaying one of our favorites, breaking down the industrial conglomerate AMETEK. AMETEK is a great pairing with last week's episode on Jack Henry. These are two businesses with very long track records executing a playbook. AMETEK is one of eight companies that Mark Leonard and his team at Constellation Software studied as they built their own empire. And it's one well worthy of a discussion as you'll hear.  To break down AMETEK, I'm joined by Nael Fakhry, Co-CIO of the Osterweis Capital Management Growth and Income Strategy. Nael has spent a significant amount of time around AMETEK from the early 2000s until today. Please enjoy this breakdown on AMETEK. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @bizbreakdowns | @zbfuss | @ReustleMatt | Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Learn about Finley (00:02:52) An Overview of Ametek (00:04:17) Ametek's Diverse Product Range  (00:11:09) Ametek's history: From Bankruptcy to Industrial Dominance (00:20:22) Ametek's Growth Model: Innovation, Acquisitions, and Global Expansion (00:25:23) Understanding Ametek's Finances (00:29:37) Exploring Revenue Growth and Margin Expansion (00:30:10) Incremental Margins and Cyclical Nature of the Business (00:31:07) Operational Excellence (00:33:35) Decentralized Approach (00:35:21) The Role of Acquisitions (00:36:33) Challenges and Risks (00:38:45) Capital Allocation (00:45:55) Evaluating Cyclical Business Performance and Resilience (00:48:27) Dividend Policy (00:49:44) Valuation and Growth Sustainability (00:53:41) - Key Lessons

Today, we are breaking down Jack Henry. If you're not familiar with it, Mark Leonard of Constellation Software once referred to this business as their ‘gold standard.' Jack Henry is a true best in class operator within the vertical market software space.  To break down the business, I'm joined by Bob Desmond, Portfolio Manager and Head of Claremont Global. Jack Henry sells full operating system software that powers small and mid-sized banks. Like many great vertical market software businesses, M&A has been a piece of the puzzle, but Jack Henry puts a very deliberate focus on organic growth particularly in their core product. The stock has appreciated 480x since its IPO in the mid-eighties, but more recently, has been essentially flat over the past five years, and we get into great business dynamics versus stock dynamics. Please enjoy this Breakdown of Jack Henry. Subscribe to Colossus Review For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.  ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Learn About Finley (00:05:42) Jack Henry's Business Model and Market Position (00:06:22) Colossus Review Announcement (00:07:04) Deep Dive into Jack Henry's Operations (00:09:43) Jack Henry's History and Culture (00:12:44) Customer Focus and Competitive Advantage (00:16:23) Growth Strategy and Market Dynamics (00:19:37) Technology and Innovation at Jack Henry (00:24:08) Customer Integration and Market Share (00:34:50) Revenue Uplift and Customer Benefits (00:38:57) Financial Metrics and Margins (00:40:35) Cash Flow and Dividend Growth (00:41:53) Cyclicality and Resilience (00:48:04) Fintech Competition and Partnerships (00:53:20) Customer Base and Market Shifts (00:56:17) Risks and Cybersecurity Concerns (00:59:22) Valuation and Long-Term Growth (01:02:14) Key Lessons from Jack Henry

This is Zack Fuss. Today, we are breaking down APi Group, a leading provider of life safety and specialty services to buildings and construction projects. While not necessarily a household name, APi's services play a vital role in the buildings where we live and work.  With over 100 acquisitions under their belt, they've strategically built a business that exceeds a billion dollars in EBITDA and sports a market cap exceeding $10 billion dollars.  The evolution of the business has come via an intentional shift from one-off construction projects to a recurring revenue model, generating a steady stream of income by providing essential services like inspections and maintenance of fire systems, elevators, security cameras, and more.  To help us break down APi, I am joined by Adam Wyden and Chadd Garcia. Adam is the founder and portfolio manager of ADW Capital, and Chadd is a portfolio manager at Ave Maria Mutual Funds. Chadd and Adam will share their insights on the company's competitive advantage and go to market strategy, including its unique decentralized management structure and its strong culture.  Please enjoy this breakdown of APi Group. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.  —-- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Learn about Finley (00:05:34) Overview of API Group's Business (00:08:54) Specialty Services Division (00:10:59) API Group's Financial Profile and Growth (00:17:18) Company Culture and Management Structure (00:23:12) Capital Allocation and Strategic Acquisitions (00:29:37) Understanding Stock Gains and Share Issuance (00:30:51) SPACs and Martin Franklin's Reputation (00:31:19) Challenges and Successes in Acquisitions (00:32:55) Focus on Inspection and Service Work (00:35:04) The Chubb Acquisition and Its Impact (00:37:10) Financial Profile and Capital Allocation (00:42:09) Valuation and Market Perception (00:46:47) Lessons from API Group Investment

This is Zack Fuss. Today, we are breaking down Kaspi, a leading financial technology company based in Kazakhstan best known for its super app. Kaspi plays a central role in the lives of millions of Kazakh citizens by offering a seamless ecosystem that combines payments and digital wallets, e-commerce, and financial services.  Its success is often attributed to its ability to solve pain points specific to the Kazakh market, such as low financial inclusion and limited access to traditional banking infrastructure. To break down Kaspi, I'm joined by the company's CEO and co-founder, Mikhail Lomtadze.  Over the past 23 years, Michael helped to transform Kaspi from a small traditional retail bank to the dominant platform it is today. He ultimately brought Kaspi public on the London Stock Exchange in 2020, and more recently listed the business on the Nasdaq Exchange in the US.  We discuss the unique challenges of building a super app in an emerging market, how Kaspi differentiates itself from the global tech giants, and the company's ambitions to expand its footprint beyond its current borders. Please enjoy this Breakdown on Kaspi. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.  —-- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Learn about Finley (00:06:26) Mikhail's Background and Journey (00:08:48) Kazakhstan's Economic Landscape (00:13:05) Caspi's Mission and Evolution (00:15:51) Building a Super App (00:21:53) Focus on Payments (00:24:50) E-commerce and Marketplace Expansion (00:28:02) Entering the Grocery Market (00:29:51) E-commerce Growth and Grocery Expansion (00:30:10) FinTech Synergy and Competitive Advantages (00:33:16) Kazakhstan Market Penetration and Growth Opportunities (00:34:20) Vertical Expansion and Service Innovation (00:35:28) Acquisition and International Expansion (00:38:21) Company Culture and Product Development (00:51:37) Super App Business Model and Market Strategy (00:55:20) Lessons From Kaspi

Today's episode is the third in our three-part miniseries on video game consoles. Here, we are breaking down Nintendo. Our guest is Ryan O'Connor, the founder of Crossroads Capital. He has a wealth of knowledge about Nintendo, and you will hear it throughout this episode.  We discuss the history of the brand and business, including how it revitalized the industry in the 1980s, some of its strategic decisions, and how the Nintendo Switch is a new economic opportunity for the business. That ties into the console thesis, which we have discussed in the previous two episodes. Please enjoy this Breakdown of Nintendo. Gaming Consoles Part 1: The Thesis Gaming Consoles Part 2: Sony For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:02:52) Episode Overview: Nintendo Breakdown (00:03:58) Nintendo's Business Transformation (00:06:57) The Origins of Nintendo (00:09:14) The Video Game Crash of 1983 (00:12:18) Nintendo's Revival Strategy (00:15:23) The NES Era and Quality Control (00:19:57) Modern Nintendo: Digital and Third-Party Ecosystem (00:25:40) Nintendo's Focus on Younger Generations (00:33:36) The Shift to a Recurring Revenue Model (00:39:43) Revenue Model of Nintendo Switch (00:40:11) Backward Compatibility and AI Enhancements (00:41:59) Nintendo Switch Online: The Netflix of Games (00:45:20) Nintendo's Business Model Transformation (00:51:24) Digital vs. Physical Game Sales (01:01:19) Nintendo's IP and Cinematic Universe (01:08:53) Management and Shareholder Relations (01:14:10) Risks and Future Outlook (01:15:40) Key Lessons from Nintendo's Evolution

This is the second episode of our multi-part series on the video game console market. If you've yet to listen to Episode One, Sia Kamalie is the founder and fund manager at Skycatcher. Join me in breaking down the video game console market and his thesis for why it's an inflecting opportunity.  In this episode, we go micro and Sia is back to break down Sony. Sia and I spend a lot of time talking about catalysts and some of the dynamics that are happening under the hood of this massive conglomerate. Please enjoy this Breakdown on Sony. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.  —-- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:50) Series Overview: Video Game Console Market (00:05:43) Deep Dive: Sony's Business Segments (00:06:43) Sony's Entertainment Powerhouses: PlayStation and Crunchyroll (00:08:39) Sony's Strategic Shifts and Financials (00:13:06) Crunchyroll: The Netflix of Anime (00:14:18) Crunchyroll's Market Position and Growth Potential (00:16:30) Synergies Between Sony's Business Lines (00:19:09) Sony's Blockchain and NFT Ventures (00:21:05) Sony's Financial Outlook and Growth Strategy (00:29:12) Sony's M&A Activities and Gaming IP (00:42:08) Emerging Markets and Gaming (00:47:06) Sony's Management and Future Prospects (00:48:31) Lessons From Breaking Down Sony

Today's episode is the first in a multi-part series on the video game console market. Our guest is Sia Kamalie, the founder and fund manager at Skycatcher. Skycatcher describes itself as focused on capturing asymmetry at the internet frontier, and Sia has very strong conviction that the video game console market is entering a major paradigm shift with an app store model set to hit its inflection point. We start with an overview of the video game console market, laying out its size and current state. In episodes two and three, we explore this theme in even more depth when we cover the names most exposed to it: Sony and Nintendo.  On these episodes, we always recommend doing your own research. We invited Sia on to lay out his thesis, so this one is particularly geared towards that investment opportunity. Please enjoy this Breakdown of the video console market.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.  —--- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:06:54) Overview of the Video Game Console Market (00:14:52) The Shift to Software and Digital Purchases (00:19:02) Nintendo and Sony: Current Trends and Future Prospects (00:29:23) In-Game Purchases and Subscription Models (00:33:58) Nintendo's Iterative Console Cycle (00:34:47) Sony's Lifetime Value and Revenue (00:35:56) Profit Margins and Software Sales (00:40:26) Console vs. Mobile and PC Gaming (00:47:44) The Rise of eSports (00:50:41) Gen Z and the Future of Gaming (00:54:28) Emerging Markets and Console Growth (00:56:37) Valuation and Market Potential (00:59:08) Lessons From The Video Game Console Market

This is Zack Fuss. Today, we're breaking down Arm Holdings. Arm designs the architecture powering billions of devices, from smartphones and data centers to IoT devices and automotive systems. In this episode, we'll explore Arm's unique value proposition and how it thrives as a licensing giant in a market dominated by leading-edge manufacturers. To break down Arm, I am joined by Jay Goldberg, who is the CEO and lead analyst at D2D Advisory, a technology and strategy consultancy. We discuss its business model, the partnerships that drive its growth, and its role in enabling companies like Apple, NVIDIA, and Qualcomm. We will also unpack Arm's business history, including its acquisition by SoftBank, its failed takeover by NVIDIA, and its IPO earlier this year. Arm currently sports a $150 billion market cap with sales approaching $5 billion, a rather robust 30x revenue multiple. Please enjoy this Breakdown of Arm. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Introduction to Business Breakdowns (00:00:52) Introduction to Arm (00:02:27) Arm's Business Model Explained (00:05:05) CPU vs GPU Dynamics (00:07:33) Arm's Competitive Landscape (00:08:52) Historical Growth and Market Expansion (00:14:06) RISC vs CISC: Architectural Approaches (00:18:38) Arm's Licensing and Partnership Model (00:22:12) Arm's Chip Design Evolution (00:22:39) The Critical Role of Software (00:23:34) Arm's Compatibility and Ecosystem (00:23:41) Dramatic Recent History (00:24:12) SoftBank's Acquisition and Nvidia's Interest (00:25:15) Nvidia's Ambitious Bet (00:26:25) SoftBank's Wake-Up Call (00:27:02) Arm's Market Penetration (00:28:07) Arm's Ubiquity in Electronics (00:29:22) Influential Figures in Arm's Success (00:30:33) Arm's Financials (00:33:32) Risks and Competitive Threats (00:40:16) Future Opportunities and Lessons (00:41:10) Conclusion and Final Thoughts

Today, we are breaking down the global luxury group Kering. You know Kering from its brands Gucci, YSL, Bottega Veneta, Balenciaga, and the list goes on. It's a luxury house similar to LVMH, but LVMH over the past five years is up over 40% and Kering is down over 60%. To break down Kering, I am joined by Jonathan Eng, portfolio manager at Causeway. We cover the owners and operators of Kering, the Pinault family. We also discuss wholesale distribution versus retail distribution and brand margin profiles. But Kering's core brand, Gucci, is different from much of what you see in luxury, and we spent a significant amount of time diving into it. What makes Gucci more cyclical than understated luxury? Where do we stand with Gucci today? And how does Jon think about all of this as an investor tapping into his historical context in the space? Please enjoy this breakdown of Kering. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:00:53) Overview of Kering and Its Brands (00:02:13) Kering's Business Strategy and Challenges (00:05:02) Historical Context and Family Influence (00:07:09) Comparing Kering and LVMH (00:10:27) Financial Performance and Market Dynamics (00:18:05) Impact of Creative Directors and Brand Evolution (00:21:28) Modern Analytical Approaches in Luxury Market (00:23:29) Exploring Kering's Development Centers (00:24:36) Decentralized Decision-Making in Luxury Brands (00:25:04) Wholesale vs. Retail: Control and Margins (00:27:33) Strategic Store Locations and Investments (00:28:51) Geographical Brand Preferences (00:30:19) Balenciaga's Advertising Fallout (00:33:46) M&A Landscape and Future Growth (00:37:41) Valuation and Market Position (00:43:06) Operational Gearing and Risks (00:43:58) Key Lessons from Studying Kering

Today we have a special year-end episode of Business Breakdowns, running through some of the best ideas that were featured on the podcast. The goal of the podcast is to detail whatever business we're covering that day. But when you think about the best investors, the best business builders, they're constantly borrowing insights from the success stories that are happening around them.  We start with a high-level theme and then explore a business's life cycle, from establishing a niche with Gartner to building a culture at Live Oak to refining operations via the lens of Trane. We go through the good and bad of business transformations told through the stories of Rolls Royce and D.R. Horton. And we cover what a clean financial model looks like through Inditex. Lastly, we wrap up with management stories that are underappreciated via Motorola and Winmark. Please enjoy this Breakdowns recap.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:01:34) Hierarchy of Consumer Preferences (00:06:10) Gartner's Niche Beginnings (00:07:48) Operational Excellence at Trane (00:10:43) Understanding Customer Needs (00:11:46) Vulcan Materials: A Case Study (00:13:26) Logistics in Construction Aggregates (00:16:29) High-Touch Customer Experience at Live Oak Bank (00:19:33) Transitioning Business Models to Financial Models (00:20:18) Insights from Ed Wachenheim on Home Builders (00:22:14) The Case for Asset-Light Strategy (00:23:27) The NVR Model: A Success Story (00:24:10) Horton's Transformation (00:25:54) Rolls Royce: A Shift in Business Model (00:28:51) Financial Modeling and Long-Term Success (00:30:09) Understanding Payout Ratios (00:33:21) Greg Brown's Leadership at Motorola (00:37:13) Winmark's Unique Operational Approach (00:40:05) Matt's Wrap Up

Today we‘re breaking down FilterBuy. From time to time, I come across a compelling founder who is willing to cover everything about their business and David Heacock, founder of FilterBuy, is exactly that. We explored the psychology of David's transition from Goldman options trader to starting an air filter business in Alabama just over 10 years ago. Since then, the business has grown into something that generates over $250 million in revenue as of today, 2024.  We discussed the economics of air filters, and David shared a great story about how he found this specific market and what makes it so unique. We also discussed various business considerations, like manufacturing location, logistics handling, and direct-to-consumer versus big box. It's really hard not to be inspired after listening to David. Please enjoy this breakdown of FilterBuy. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:52) Meet David Heacock: From Goldman Sachs to FilterBuy (00:06:36) The Journey of Entrepreneurship (00:12:27) The Economics of Air Filters (00:18:15) Challenges in Manufacturing (00:23:25) Building a Team and Scaling Up (00:26:51) Logistics and Cost Efficiency (00:30:23) Challenges with FBA Fees (00:31:43) Sales and Competitive Dynamics (00:32:04) Residential vs. Commercial Air Filtration (00:33:16) Retail Strategy and Market Expansion (00:37:22) Building a Brand and Logistics (00:38:09) Importance of Delivery Speed (00:39:29) Navigating Big Box Retailers (00:42:50) Vision for the Future (00:51:34) Lessons Learned from FilterBuy

Today we are covering the world of fast fashion. If you don't know the name Inditex, you certainly know Zara, the core business inside Inditex. My guest, Alistair Wittet, recently launched Aecus Partners, an equity boutique specializing in European and global equities, and has followed Inditex for decades.  He gets into how the company pivoted its business over the years from the initial store expansion, the e-commerce evolution, and what has allowed Inditex to succeed where other fast fashion peers have struggled. There are so many interesting themes here: success in no-growth industries, the power of thoughtful vertical integration, decentralized decision-making, and corporate pivots. Please enjoy this Breakdown of Inditex. Founders Podcast - #372 Amancio Ortega For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The [6.7%] yield is the average annualized yield to maturity (YTM) across all ten bonds in the Bond Account, before fees, as of [9/05/2024]. A bond's yield is a function of its market price, which can fluctuate; therefore a bond's YTM is “locked in” when the bond is purchased. Your yield at time of purchase may be different from the yield shown here. The “locked in” YTM is not guaranteed; you may receive less than the YTM of the bonds in the Bond Account if you sell any of the bonds before maturity, or if the issuer calls or defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions. – This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:06:52) Overview of Inditex and Zara (00:09:46) The Fast Fashion Model (00:14:27) Origins and Expansion of Inditex (00:17:22) Navigating Financial Crises and E-commerce (00:22:30) Supply Chain and Inventory Management (00:24:32) Revenue and Growth Dynamics (00:29:48) Margin and Cost Structure (00:35:35) Inditex's Financial Management Strategies (00:36:20) Impact of COVID-19 on Inditex's Margins (00:37:13) Free Cash Flow and Inventory Management (00:39:43) Competitive Landscape: H&M and Shein (00:42:57) The Role of Culture in Inditex's Success (00:54:51) Sustainability and ESG Concerns (00:58:43) Investment Insights and Risks (01:00:40) Key Lessons from Inditex

Today we are breaking down commercial real estate lending with Josh Zegen, co-founder and managing principal of Madison Realty Capital.  Josh and his team at Madison launched in 2004 and evolved from a hard money lender when there really was no alternative industry called commercial real estate lending. They've developed into a single-source capital provider today with more than $21 billion in AUM. Josh gets into great detail here about how it's not an all-or-nothing story when it comes to real estate. We covered some of the basics on construction loans, the life cycle of capital, and new developments. Then, we get into some of the current market dynamics, post-COVID interest rates, post-SVB, and much, much more.  Please enjoy this Breakdown of commercial real estate lending. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The [6.7%] yield is the average annualized yield to maturity (YTM) across all ten bonds in the Bond Account, before fees, as of [9/05/2024]. A bond's yield is a function of its market price, which can fluctuate; therefore a bond's YTM is “locked in” when the bond is purchased. Your yield at time of purchase may be different from the yield shown here. The “locked in” YTM is not guaranteed; you may receive less than the YTM of the bonds in the Bond Account if you sell any of the bonds before maturity, or if the issuer calls or defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions. – This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. This holiday season go to eightsleep.com/breakdowns and use code JOYS for up to $600 off the Pod 4 Ultra when bundled.  ----- Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:05:22) Starting Madison Realty Capital (00:06:44) Evolution of the Lending Market (00:10:08) Construction Lending Dynamics (00:15:36) Risk Management and Portfolio Strategy (00:18:49) Leveraging Private Credit (00:30:31) Portfolio Management and Challenges (00:33:32) COVID-19's Impact on Real Estate Projects (00:34:49) Strategies for Loan Workouts (00:37:38) Post-COVID Market Dynamics (00:39:45) Opportunities in Loan Purchases (00:42:53) Sector-Specific Real Estate Insights (00:49:27) Impact of Work Schedules on Real Estate (00:51:22) Interest Rates and Market Impact (00:55:45) Future Opportunities and Market Trends

Today we are breaking down SpaceX. Luke Ward from Baillie Gifford was the perfect match for this episode, as he and his team first invested in SpaceX in 2018. We cover the story of SpaceX and its scientific magic, but we really key in on the business model. We focus on the cost curve of launches, separating manufacturing from reusability. Luke gets into how Starlink represents a key component in making the Starship program and the broader economic model click. We then use our intellectually honest galaxy brains to imagine what the space economy could look like in the future and Luke is very open and honest about the risks with such a capital-intensive mission.  Please enjoy this Breakdown on SpaceX. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The [6.7%] yield is the average annualized yield to maturity (YTM) across all ten bonds in the Bond Account, before fees, as of [9/05/2024]. A bond's yield is a function of its market price, which can fluctuate; therefore a bond's YTM is “locked in” when the bond is purchased. Your yield at time of purchase may be different from the yield shown here. The “locked in” YTM is not guaranteed; you may receive less than the YTM of the bonds in the Bond Account if you sell any of the bonds before maturity, or if the issuer calls or defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions. – This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. This holiday season go to eightsleep.com/breakdowns and use code JOYS for up to $600 off the Pod 4 Ultra when bundled.  ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:05:53) SpaceX: A Blend of Business and Technology Innovation (00:06:30) Baillie Gifford's Investment Journey with SpaceX (00:09:53) Challenges and Innovations in Space Launch Costs (00:11:24) The Rise of Private Space Companies (00:15:23) SpaceX's Reusability and Cost Efficiency (00:18:25) Starship: The Future of Space Travel (00:26:05) Starlink: Revolutionizing Satellite Internet (00:32:01) The Potential of Space-Based Manufacturing (00:36:31) Competitive Advantage of Starship (00:37:19) Management and Culture at SpaceX (00:39:55) Government and Commercial Markets (00:40:45) Starlink's Future and Connectivity (00:44:11) SpaceX's Long-Term Vision (00:51:11) Regulatory and Launch Challenges (00:54:49) Valuation and Investment Insights (01:02:23) Lessons from SpaceX

Today, we are covering the increasingly thematic market of venture secondaries. My guest is Ravi Viswanathan, founder and managing partner of NewView Capital.  We cover some of the basics around these transactions because so much of private markets are bespoke. And while Ravi confirmed that the bespoke nature makes each individual secondary deal unique, there are consistencies in terms of how they approach the opportunity.  We discuss the various players in the market and their motivations for buying and selling, whether they are VC sellers, founders, employee sellers, or VC buyers. Ravi lays out the structural dynamics that are likely to make this a larger market well into the future. Please enjoy this Breakdown of venture secondaries.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. This holiday season go to eightsleep.com/breakdowns and use code JOYS for up to $600 off the Pod 4 Ultra when bundled.  — This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Introduction to Secondary Transactions in Private Markets (00:08:43) Understanding the Basics of Secondary Transactions (00:10:28) Evolution and Growth of Venture Secondaries (00:13:12) Impact of Market Dynamics on Secondary Transactions (00:15:20) Pricing and Valuation in Secondary Markets (00:18:47) Challenges and Strategies in Secondary Transactions (00:28:25) Market Trends and Future Outlook (00:33:30) Venture Sponsor to Sponsor Transactions (00:34:05) Buyer Mentality and Exit Strategies (00:35:39) IPO Market and Valuation Trends (00:38:09) Focus on Growth and Profitability (00:40:04) Strategic Exits and Market Dynamics (00:49:48) Risk Dynamics and Market Competition (00:55:44) Key Lessons and Future of Venture Capital

Today we are breaking down Informa. At its core Informa is a live events business headquartered in the UK. While media conversations often revolve around consumer giants like Disney, Informa operates in a different realm entirely - dominating the world of business-to-business connections through the largest portfolio of trade shows and events globally. I am joined by Nick Shenton from Artemis Investment Management. With nearly 1,000 live events across industries ranging from pharmaceuticals to maritime, Informa creates the meeting places where entire supply chains come together to exchange knowledge, build networks, and do business. These industry events come with a compelling financial model, which Nick details. He also describes Informa's academic publishing business, B2B digital services, and all of the risks involved with this unique company. Please enjoy this breakdown of Informa.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. This holiday season go to eightsleep.com/breakdowns and use code JOYS for up to $600 off the Pod 4 Ultra when bundled.  — This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:07:37) Informa's Business Model and Key Assets (00:09:46) Revenue Breakdown and Financial Performance (00:12:51) Historical Background and Growth (00:16:54) Impact of COVID-19 and Technological Advancements (00:20:24) Economics of Live Events (00:25:28) Challenges and Cyclicality in the Events Business (00:32:03) Informa's Publishing Arm: Taylor and Francis (00:34:39) Criticisms and Value of Publishing Models (00:36:31) Digital Transition in Publishing (00:37:45) Introduction to TechTarget (00:38:36) TechTarget's Unique Market Position (00:43:22) Financial Overview and Valuation (00:46:17) Risks and Industry Dynamics (00:50:39) M&A Strategy and Capital Allocation (00:57:22) Lessons from Informa's Success

This is Zack Fuss. Today we're breaking down Fastenal. Starting as a small fastener retailer in Minnesota, the company has evolved into a mission-critical supply chain partner for its industrial customers. Today, the business sports a nearly $50 billion market cap and produces nearly $8 billion in sales.  The impact of Fastenal's founder, Bob Kierlin, on Fastenal's commercial success can't be overstated. The industrial vending machine was his original idea, a vision he made a reality years later through its network of local branches, onsite locations, embedded with customers and innovative inventory management technologies. I'm joined by Delian Entchev, a portfolio manager at Aoris Investment Management. Today, we'll unpack the strategic choices, cultural DNA, and relentless customer focus that have fueled Fastenal's remarkable success. Please enjoy this Breakdown of Fastenal. Check out our new print publication Colossus Review. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. This holiday season, go to eightsleep.com/breakdowns and use code JOYS for up to $600 off the Pod 4 Ultra when bundled.  — This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:07:44) Understanding Fastenal's Business Model (00:08:24) The Amazon Connection (00:10:09) Fastenal's Founding Story (00:12:06) Pivot to Business Customers (00:13:18) Empowering Employees for Growth (00:14:44) Frugality and Culture at Fastenal (00:17:33) Expansion and Evolution (00:19:07) Onsite Services and Technological Innovations (00:22:17) International Growth and Future Opportunities (00:23:16) Financial Profile and Customer Relationships (00:28:36) Customer Integration: Fastenal's On-Site Business Model (00:29:21) Three Pillars of Fastenal's Service: Experts, Inventory, and Technology (00:30:39) Customization and Proximity: Tailoring On-Site Solutions (00:31:56) Economic Relationships and Customer Spend (00:33:56) Fastenal's Competitive Edge: Value Proposition and Culture (00:37:54) Growth and Market Share: Fastenal's Expansion Strategies (00:44:52) Financial Discipline and Capital Allocation (00:50:14) Lessons from Fastenal: Transparency and In-Person Visits

Today, my guest is Fernando De Leon, founder of Leon Capital Group. Fernando operates 14 different businesses under the Leon Capital umbrella, which vary across real estate, healthcare, and financial services. But as you will hear in our conversation, the businesses are connected and instruct one another. The connective tissue throughout this conversation is how demographic insight sits underneath everything and is the foundation of what makes this business possible.  As you will hear, there's no better person to talk about demographic dynamics than Fernando. Please enjoy this Breakdown on the demographics driving real estate.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Alphasense. AlphaSense has completely transformed the research process with cutting-edge AI technology and a vast collection of top-tier, reliable business content. Imagine completing your research five to ten times faster with search that delivers the most relevant results, helping you make high-conviction decisions with confidence. AlphaSense provides access to over 300 million premium documents, including company filings, earnings reports, press releases, and more from public and private companies. Invest Like the Best listeners can get a free trial now at Alpha-Sense.com/Invest and experience firsthand how AlphaSense and Tegas help you make smarter decisions faster. — This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. Go to eightsleep.com/breakdowns and use the code glueguys for $350 off.  ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Introduction and Background (00:05:55) Early Life and Education (00:08:03) Real Estate and Demographics (00:11:02) Business Ventures and Strategies (00:13:17) Challenges and Opportunities in Real Estate (00:17:13) Efficient Resource Management (00:18:12) Downside Protection Strategies (00:19:59) Insurance and System Optimization (00:21:43) Real Estate Cyclicality and Capital Support (00:24:28) Challenges in Housing Development (00:25:58) Target Markets and Demographic Trends (00:29:39) Opportunities in Secondary Markets (00:31:49) Nearshoring and Global Trade (00:43:13) Future Outlook and Technological Impact (00:55:02) Lessons From Breaking Down The Industry

This is Zack Fuss. Today we are breaking down Merck, one of the world's largest and oldest pharmaceutical companies. The company has been shaping medicine and fostering innovation for over 130 years. From its humble beginnings as a small family pharmacy in Germany, today's iteration of Merck has transformed into a nearly $300 billion market cap business with particular strength in oncology.  At the heart of Merck's recent success is Keytruda, arguably the world's most important cancer drug. This single medication now generates over $25 billion in annual revenue. But, Merck's story is not only about Keytruda, it's about a company that's consistently pursued innovative science, combined with a handful of bold decisions, which resulted in the development of some of the world's first vaccines and breakthroughs in diabetes treatment.  To break down Merck, I am joined by Ashwin Varma, who is currently a medical student at UT Health San Antonio. We unpack Merck's business model, explore its industry-leading oncology franchise, and examine its pipeline of future drugs, and understand how they have navigated the complex world of pharmaceutical patents and regulation. Please enjoy this Breakdown on Merck.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Alphasense. AlphaSense has completely transformed the research process with cutting-edge AI technology and a vast collection of top-tier, reliable business content. Imagine completing your research five to ten times faster with search that delivers the most relevant results, helping you make high-conviction decisions with confidence. AlphaSense provides access to over 300 million premium documents, including company filings, earnings reports, press releases, and more from public and private companies. Invest Like the Best listeners can get a free trial now at Alpha-Sense.com/Invest and experience firsthand how AlphaSense and Tegas help you make smarter decisions faster. — This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. Go to eightsleep.com/breakdowns and use the code glueguys for $350 off.  ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:05:50) History and Evolution of Merck (00:08:32) Merck's Blockbuster Era and Challenges (00:10:51) Understanding the Pharma Industry (00:15:32) Merck's Current Business and Financials (00:20:48) Patent Protection and R&D Strategies (00:35:00) Checkpoint Inhibitors: A Breakthrough in Cancer Treatment (00:35:54) The Rise of Keytruda: From Trials to Triumph (00:37:56) Keytruda's Expanding Indications and Market Impact (00:39:56) Understanding Cancer Therapy Lines (00:42:09) Keytruda's Competitive Landscape and Future Challenges (00:46:33) Merck's Strategy for Post-Patent Success (00:57:41) Leadership and Organizational Structure at Merck (01:04:01) Lessons from breaking down Merck

Today we are breaking down American Tower: the REIT, the communications giant, and the infrastructure asset. To break down American Tower I'm joined by William Heard, founder and CIO of Heard Capital Management. William founded Heard Capital in 2011.  Today, the firm manages $2 billion in assets, holds about 15 to 20 names, and has very specific criteria for investing in companies. We cover AMT from all angles—the long life, physical assets that underpin the business, the contracted and highly visible revenue stream, the secular growth story, and some of the micro dynamics. American Tower represents so many things in the economy, so it made for a very interesting and wide-ranging conversation. Please enjoy this Breakdown of American Tower.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. — This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The [6.7%] yield is the average annualized yield to maturity (YTM) across all ten bonds in the Bond Account, before fees, as of [9/05/2024]. A bond's yield is a function of its market price, which can fluctuate; therefore a bond's YTM is “locked in” when the bond is purchased. Your yield at time of purchase may be different from the yield shown here. The “locked in” YTM is not guaranteed; you may receive less than the YTM of the bonds in the Bond Account if you sell any of the bonds before maturity, or if the issuer calls or defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns  (00:03:42) Understanding American Tower's Infrastructure (00:04:41) Market Size and Share (00:05:44) Ownership and Construction of Towers (00:06:51) Investment and Growth in Tower Infrastructure (00:11:32) Data Centers and Their Importance (00:14:34) Leasing Model and Revenue Structure (00:17:02) Management and Financial Strategy (00:18:42) Acquisitions and Growth Strategy (00:21:39) Management Teams and Strategic Priorities (00:22:35) Capital Allocation and Dividend Strategy (00:24:09) REITs and Market Dynamics (00:26:49) International Operations and Challenges (00:29:19) Carrier Spending and Revenue Streams (00:37:57) Risks and Competitive Landscape (00:38:58) Lessons from Breaking Down American Tower

Today, we are breaking down the insurance giant AIG. AIG's story is one of a remarkable turnaround, a tale of a global insurance giant emerging from near collapse during the great financial crisis. Over nearly two decades, AIG has transformed itself into a more focused and efficient property and casualty insurer.   To grasp the magnitude of AIG's journey, consider this: During the financial crisis, the company required a $180 billion bailout from the U. S. government, a sum it fully repaid with interest.  To help tell the story of AIG's transformation and its current position, I'm joined by Austin Hawley, Portfolio Manager at Diamond Hill. Today, under Peter Zaffino's leadership, AIG has refocused its underwriting efforts, returning to profitability while divesting noncore businesses, including the demerger of its life insurance arm, Corebridge. The AIG of today stands as a near pure play specialty insurer with a focus on achieving top-quartile industry returns. Please enjoy this breakdown of AIG For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. — This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. Go to eightsleep.com/breakdowns and use the code glueguys for $350 off.  ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Introduction to Business Breakdowns (00:04:57) AIG: A Tale of Turnaround (00:05:31) Understanding PNC Insurance (00:06:56) AIG's Historical Context (00:09:58) AIG's Post-Crisis Struggles (00:15:17) The 2017 Management Overhaul (00:21:42) Berkshire Hathaway's Role (00:24:26) Strategic Moves and Divestitures (00:28:32) AIG's Strategic Transformation (00:30:40) Understanding AIG's Business Metrics (00:32:10) Specialty Lines and Global Footprint (00:33:31) AIG's Niche Businesses (00:34:47) Evaluating Insurance Companies (00:38:04) Competitive Advantages in Insurance (00:42:04) Pricing Environment and Market Dynamics (00:45:35) AIG's Investment Strategy (00:48:25) Competitors and Comparisons (00:50:03) Lessons from Breaking Down AIG's Turnaround

Today we are getting into the world of coffee with Gregory Zamfotis, the founder of Gregorys Coffee. We breakdown the New York City born coffee chain that now spans across twelve US states.  This is a true look into what it takes to open up a coffee shop and the economics behind it. We get into what it's like to innovate in an industry where innovation can last a week before a competitor releases the same thing on their menu. And Greg also shares all of the challenges around going from one store to a second store to scaling into what Gregorys is today. Please enjoy this Breakdown of Gregorys coffee. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by EightSleep, the temperature-controlled mattress cover that heats or cools your mattress to transform your sleep. The Pod 4 Ultra is the new gold standard in intelligent sleep systems. It can be added to your current mattress like a fitted sheet and is been clinically proven to give you up to an hour more quality of sleep every night. The cooling capability can cool your side of the bed to 20 degrees below room temperature, all managed by the pod's autopilot feature, which adjusts the temperature throughout the night. Go to eightsleep.com/breakdowns and use the code glueguys for $350 off.  --- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. As of 9/26/24, the average, annualized yield to worst (YTW) across the Bond Account is greater than 6%. A bond's yield is a function of its market price, which can fluctuate; therefore, a bond's YTW is not “locked in” until the bond is purchased, and your yield at time of purchase may be different from the yield shown here. The “locked in” YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. See https://public.com/disclosures/bond-account to learn more. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:33) Growing Up in the Food and Beverage Industry (00:06:57) Deciding to Pursue Gregorys Coffee (00:10:04) Opening the First Gregorys Coffee Location (00:16:42) Innovating and Expanding the Business (00:28:57) Challenges and Lessons in Scaling Up (00:50:52) Comparing Quality: Mass Chains vs. Our Espresso (00:53:27) Our Mission and Core Values (00:58:10) Consistency Across Locations (01:00:46) Partnership with Simon Property Group (01:07:36) The Role of Technology and Loyalty Programs (01:12:16) Balancing Order Ahead and In-Store Experience (01:15:47) The Cost and Challenges of Opening a Coffee Shop (01:22:13) Handling Competition and Maintaining Quality (01:24:29) The Coffee Community and Industry Trends (01:27:16) Vision for Future Expansion (01:29:12) Building a Strong Team and Infrastructure (01:34:04) Lessons Learned and Entrepreneurial Advice

Today, we are covering what might be the most interesting investment strategy I've come across in a long time: activism in Japan. In this episode, I talk with Masumi Nishida, Partner and Managing Director for Dalton's Tokyo research office. As part of this intro, I brought on the catalyst for this episode, Nick Bartolo, founder and Managing Partner of Essential Partners. The conversation delves into the opportunities for activism in the Japanese market, highlighting the historically low valuations of Japanese equities and the cultural dynamics contributing to this scenario.  We discuss corporate governance reforms and the Tokyo Stock Exchange's role in improving market efficiency and shareholder value. And, Masumi highlights several case studies that illustrate successful activist strategies, including promoting management buyouts and enhancing capital allocation. Please enjoy this unique Breakdown on Japan activism.  For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. --- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The [6.7%] yield is the average annualized yield to maturity (YTM) across all ten bonds in the Bond Account, before fees, as of [9/05/2024]. A bond's yield is a function of its market price, which can fluctuate; therefore a bond's YTM is “locked in” when the bond is purchased. Your yield at time of purchase may be different from the yield shown here. The “locked in” YTM is not guaranteed; you may receive less than the YTM of the bonds in the Bond Account if you sell any of the bonds before maturity, or if the issuer calls or defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions. ----- Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:00:40) Understanding Japan's Market Valuation (00:02:08) Cultural Dynamics and Cash Reserves (00:03:47) Financial Literacy and Balance Sheet Optimization (00:08:27) Corporate Governance and TSE Reform (00:13:12) Challenges of Cross Shareholdings (00:18:24) Opportunities in Small to Mid Cap Companies (00:21:31) Activism Strategies and Proposals (00:26:51) Bellpost's Strategic Moves and Initial Proposals (00:27:24) Challenges with Shareholder Support in Japan (00:29:11) Management Buyouts and Capital Allocation (00:30:33) Case Study: Ihara Science's Path to Privatization (00:31:43) Financing Dynamics in Japanese MBOs (00:34:48) Case Study: Mitsuboshi Belting's Shareholder Proposals (00:40:35) Case Study: Ihara Science's MBO Success (00:45:55) Current Market Dynamics and Future Outlook

Today we are breaking down healthcare, one of the most impactful sectors in the world, yet one of the most unique for investors. My guests are Rod Wong, founder and CIO of RTW Investments, and Stephanie Sirota, chief business officer of RTW Investments. RTW was founded in 2009 and operates a sector-specific strategy in healthcare. We discuss the evolution of their model, which feels particularly important given how much it aligns with the healthcare investment process.  We cover the various phases of drug investments, the unique dynamics of founders and team building, and we get into some of the more philosophical discussions around regulation in the industry. Please enjoy this breakdown on healthcare. Editor-in-Chief application here. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform. --- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The [6.7%] yield is the average annualized yield to maturity (YTM) across all ten bonds in the Bond Account, before fees, as of [9/05/2024]. A bond's yield is a function of its market price, which can fluctuate; therefore a bond's YTM is “locked in” when the bond is purchased. Your yield at time of purchase may be different from the yield shown here. The “locked in” YTM is not guaranteed; you may receive less than the YTM of the bonds in the Bond Account if you sell any of the bonds before maturity, or if the issuer calls or defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule. Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:07:50) Phases of Healthcare Product Lifecycle (00:09:03) Challenges and Opportunities in Biotech (00:14:01) Investment Strategies in Healthcare (00:16:47) The Evolution of RTW and Team Structure (00:20:11) Public and Private Market Dynamics (00:26:24) Gene Therapy: A Case Study (00:33:08) Future of Healthcare Innovation (00:46:11) Global Biotech Landscape: US Dominance and International Opportunities (00:48:29) Big Pharma Winners and Losers: A Decade in Review (00:51:11) Impact of the Inflation Reduction Act (IRA) on Drug Development (00:54:55) Regulatory Changes and Their Impact on Innovation (01:10:08) M&A in Biotech: A Critical Component for Success (01:15:57) GLP-1 Drugs: Market Impact and Future Prospects (01:20:38) Current Biotech Market: Opportunities and Future Outlook

Today we are breaking down the paint giant Sherwin-Williams. Founded in 1866, Sherwin Williams is a great example of a company where everyday consumers might not appreciate just how great of a business and stock this has been. Over the last 20 years, Sherwin has compounded earnings at 14% per year. And over those 20 years, the stock has returned 26x your investment. And that's compared to the S&P at 5x your investment. This has been an incredible quiet compounder.  My guest today is Todd Bassnight, director of equity research at Aureus Asset Management. We discuss the business's vertically integrated model, the focus on a particular customer base, a management team that's been thoughtful about capital allocation, and some of its big deals historically. Please enjoy this Breakdown on Sherwin-Williams. Business Breakdowns on AutoZone.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Ridgeline. Ridgeline has built a complete, real-time, modern operating system for investment managers. It handles trading, portfolio management, compliance, customer reporting, and much more through an all-in-one real-time cloud platform. I think this platform will become the standard for investment managers, and if you run an investing firm, I highly recommend you find time to speak with them. Head to ridgelineapps.com to learn more about the platform. --- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at https://public.com/businessbreakdowns. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:36) Sherwin Williams' Business Model and History (00:08:46) The Paint Stores Group: Sherwin Williams' Crown Jewel (00:14:37) Professional Painters vs. DIY: Market Dynamics (00:19:43) Sherwin Williams' Controlled Distribution Model (00:28:24) The Valspar Acquisition and Consumer Brands (00:32:52) Exploring the Industrial Coatings Market (00:36:43) Sherwin's Performance in the Automotive Market (00:38:03) Sherwin's Growth and Market Share (00:39:32) Financial Overview and Store Economics (00:41:17) Sherwin's Competitive Edge and Market Dynamics (00:50:59) Capital Intensity and Free Cash Flow (01:00:00) Risks and Management Changes (01:04:24) Lessons from Sherwin-Williams

Today, we are breaking down the Japanese internet conglomerate Rakuten. I'm joined by Matt Brett, the lead manager of the Japan Trust at Baillie Gifford, which has continuously invested in Rakuten since 2005. Rakuten is the unique Japanese conglomerate that wasn't started over a hundred years ago and instead was part of the late nineties global internet boom. Matt helps explain what was different about that internet boom in Japan and how Rakuten was really shaped by it. We get into the various business lines, from traditional e-commerce to the credit card business, and more, but notably how the loyalty point system has become the glue connecting everything together. We also cover Rakuten's major investment into the mobile phone market, and Matt gives a very intellectually honest look at why this is such a huge debate for Rakuten, investors, and anybody looking at the name. Please enjoy this breakdown of Rakuten.  Check out our new show, Glue Guys! Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. --- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at https://public.com/businessbreakdowns. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:52) Overview of Rakuten (00:06:15) Rakuten's Business Model and History (00:13:32) Expansion and Challenges (00:15:36) Challenges and Lessons from Overseas Expansion (00:18:47) Cultural and Market Differences in Digitalization (00:20:30) E-commerce Penetration and Future Trends (00:22:18) Competitive Advantages in Japan's Market (00:25:27) Rakuten's Mobile Network Ambitions (00:30:36) Financials and Market Position (00:37:24) Future Prospects and Risks (00:39:10) Rakuten's E-commerce and Finance Growth (00:40:07) Mobile Network Expansion and Challenges (00:41:05) Customer Acquisition Strategies (00:43:26) Comparing Rakuten to Competitors (00:48:15) Financial Performance and Margins (00:50:39) Capital Allocation and Long-term Strategy (00:53:13) Risks and Future Potential (00:56:17) Lessons from Rakuten

Today, we are breaking down Renishaw, a leading supplier of measuring and manufacturing systems, specifically focused on accuracy and precision. What does that mean in layman's terms? Renishaw is a picks and shovels provider to many of the fastest-growing end markets in the world. The company designs and develops systems for anything revolving around semiconductors, robotics, and medical devices.  To break down Renishaw, I'm joined by Matt Tonge, fund manager at Liontrust Asset Management. Matt helps simplify this business, describing both the customer base and exactly what is going on with these precision tools. We get into some of its unique dynamics of revenue and R&D and what the opportunity set is for a business like Renishaw. Please enjoy this business breakdown of Renishaw.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. --- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at https://public.com/businessbreakdowns. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:52) Overview of Renishaw (00:06:53) Renishaw's Market and Products (00:13:09) Revenue Dynamics and Market Cycles (00:18:02) Renishaw's Origin Story (00:22:56) Competitors and Market Position (00:24:49) Financial Performance and Investment (00:32:10) Product Range and Standardization (00:34:21) Challenges in Additive Manufacturing (00:36:03) Customer Stickiness and Market Presence (00:41:39) Investment and Long-Term Strategy (00:49:16) Lessons from Breaking Down Renishaw

Today we are breaking down the publicly traded investment company 3i. You may think if you've seen one publicly traded investment vehicle, you've seen them all. Yet, 3i is an investment vehicle where one business, Dutch retailer, Action, represents well north of 50% of their net asset value.  Our guest to break down 3i is Luke Bridgeman, a partner and portfolio manager at Hosking Partners. Luke shares the unique origin story of 3i, which dates back to pre-World War II in England. He takes us up through the present day, where longtime investment banker Simon Burrows has taken 3i and completely reshaped the asset management business into something that looks completely different.   Please enjoy this breakdown of 3i.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. Plus, with 75% of private market transcripts available exclusively on Tegus, we offer insights you simply can't find elsewhere. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. --- This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at https://public.com/businessbreakdowns. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:25) The Origin Story of 3i (00:06:30) 3i's Evolution and Strategic Shifts (00:07:12) The Impact of the 2008 Financial Crisis (00:08:20) Simon Burrows' Leadership and Strategic Changes (00:14:25) Focus on Action: 3i's Key Investment (00:25:23) 3i's Investment Strategy and Future Prospects (00:29:41) Valuation and Market Position of 3i (00:34:27) Key Risks and Management Insights (00:37:16) Lessons Learned from Breaking Down 3i

This is Matt Reustle. We're coming up on 200 episodes of Business Breakdowns, and one of the best things about hosting this show is that while each episode brings something completely different, you start to see the connective tissue that ties businesses together. We're often asked, "What's your favorite episode?" I certainly have favorites, but there are ideas that emerge from episodes that really stand out to me. In this episode, you'll hear several audio clips from past Breakdowns that we think stand out, and we'll share some of the context around them, why we think they're interesting, and bring the ideas to life. Please enjoy this mash-up of Business Breakdowns.  Register for the Business Breakdowns x Founders Conference. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Tegus, where we're changing the game in investment research. Step away from outdated, inefficient methods and into the future with our platform, proudly hosting over 100,000 transcripts – with over 25,000 transcripts added just this year alone. Our platform grows eight times faster and adds twice as much monthly content as our competitors, putting us at the forefront of the industry. See the difference a vast, quality-driven transcript library makes. Unlock your free trial at tegus.com/patrick. — This episode is brought to you by Public: Invest in stocks, bonds, options, crypto, and more in one place. A High-Yield Cash Account is a secondary brokerage account with Public Investing, member FINRA/SIPC. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at public.com/disclosures/high-yield-account. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:02:53) Analyzing End Markets (00:04:58) L'Oreal Breakdown: Low Barriers to Entry, High Barriers to Scale (00:10:08) AMETEK: Small, Low Growth Markets (00:14:06) Vulcan Materials: Geographic Nuance (00:16:47) ASML: Technological Collaboration (00:21:05) Dolby: The Power of Patents